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Material Requirements Planning
Learning objectives
At the end of this lecture, students should be able to understand
Material Requirements Planning (MRP) MRP Logic and Product Structure Trees MRP Example
Lot Sizing in MRP Programs
Material Requirements Planning Materials requirements planning (MRP) is the
logic for determining the number of parts, components, and materials needed to produce a product.
MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced.
Dependent demand drives MRP. MRP is a software system.
Example of MRP Logic and Product Structure Tree
Given the product structure tree for “A” and the lead time and demand information below, provide a materials requirements plan that defines the number of units of each component and when they will be needed.
Lead Times Product Structure Tree for Assembly A A 1 day
A
B(4) C(2)
B 2 days C 1 day D 3 days E 4 days F 1 day
Demand
D(2) E(1) D(3) F(2)
Day 10 50 A
Day 8 20 B (Spares) Day 6 15 D (Spares)
First, the number of units of “A” are scheduled backwards to allow for their lead time. So, in the materials requirement plan below, we have to place an order for 50 units of “A” in the 9th week to receive them in the 10th week.
Day: A Required
1 2 3 4 5 6 7 8 9 10 50
Order Placement 50
LT = 1 day
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